Noy seen to keep P600-B lump sum presidential fund

MANILA, Philippines - President Aquino is likely to continue enjoying his discretion over about P600 billion in lump-sum appropriations under the 2014 budget.

Senate finance committee chairman Francis Escudero had endorsed the approval for plenary debates of the multibillion-peso President’s Special Purpose Fund (SPF) before Congress went on a three-week break last Wednesday.

“No member indicated to the chair (any intent) to propound questions,” he  said after the committee scrutinized and approved the P997.5-million budget of the Department of Budget and Management (DBM).

Budget Secretary Florencio Abad seemed to have satisfactorily explained before the committee the DBM’s budget for next year, as well as the President’s SPF.

Escudero’s recommendation came as the Senate has yet to finally decide whether to delete the P4.8-billion Priority Development Assistance Fund (PDAF) in the 2014 budget or allow each senator to enjoy discretion over their P200-million annual allocation.

Prior to the endorsement of the SPF for plenary debates, Escudero issued a caveat that the use of the DBM budget and the President’s SPF should be subject to reportorial requirements to Congress.

Upon resumption of session on Nov. 18, the Senate is expected to tackle in the plenary the 2014 budget, the approved version of which the House of Representatives  transmitted   last week.

During the committee review of the DBM budget, Escudero outlined the President’s SPF divided under 11 items: assistance to local government units, P361.3 billion; pension and gratuity fund, P120.5 billion; miscellaneous personnel benefits fund (MPBF), P80.7 billion; calamity fund, P7.5 billion; contingency fund of P1 billion; international commitments fund, P4.8 billion; e-government fund, P2.5 billion; and feasibility studies fund, P400 million.

The Department of Education (DepEd)’s School Building Program, the lawmakers’ PDAF  and the unprogrammed fund are also under the SPF.

The PDAF amounts to P24.5 billion for the House of Representatives and some P4.8 billion for the Senate.

Administration critics have categorized the SPF as presidential pork barrel.

Opposition Sen. JV Ejercito has been vocal in expressing concern over the President’s discretionary funds amid recommendations.

“Are we not giving the executive branch too much power over these funds?” he said.

Ejercito would rather have the senators’ P200 million in PDAF be itemized under the annual budget.

Sen. Jinggoy Estrada said Senate Minority Leader Juan Ponce Enrile has been pushing for the deletion of the P4.8-billion PDAF from the 2014 budget. 

“As part of the minority, I am in favor of that,” he said.

Senate Deputy Minority Leader Vicente Sotto III is also in favor of deleting the allocation from the proposed budget for next year.

Senate President Franklin Drilon’s proposal to abolish the P4.8 billion from the 2014 budget was met with some resistance at the Senate.

Senators have agreed in a caucus to submit before the Senate committee on finance by Nov. 11 their respective stands “whether they wish to amend or realign funds to agencies or programs,” Sen. Juan Edgardo Angara said.

In his presentation, Abad said the DBM’s proposed budget for 2014 is P997.5 million, representing a P35.5-million increase from this year’s budget of P962 million.

Abad also defended the President’s special purpose fund.

During the hearing, Escudero specifically mentioned the P1 billion in contingent fund.  

The amount has been provided under the 2014 budget for the local and foreign travels of President, as well as requirements for new or urgent projects.

“The second item, you mentioned among others that’s where you get funds for the President’s travels,” Escudero said. “Is it possible for us to unbundle this? “ 

Abad said the DBM is leaving to lawmakers the discretion to tap the other P1-billion fund under the School Building Program.  

“We leave it now to wisdom of the legislature because they are the ones very insistent... the President’s objective is to close the classroom gap already,” he said. 

Escudero wanted to know why the SPF has a lump-sum appropriation for feasibility studies when the National Economic and Development Authority (NEDA) can handle such studies.

Abad said the fund will be used for special infrastructure projects not  covered under the private-public partnership (PPP).

It was not placed under the NEDA budget to allow the DBM “better control and supervision of the fund,” he added.

Abad said the SPF must be retained under the GAA since the P7.5 billion in annual calamity funds are used for relief, rehabilitation and repair  of damaged structures due to typhoons and disasters.

The P1-billion  contingent fund is meant for new  or urgent projects and for the local and foreign travels of the President, he added.

Abad said the Feasibility Studies Fund is a new initiative to support feasibility studies of projects   different from the administration’s PPP programs.

The international commitments fund goes to contributions to international organizations like the United Nations and government preparations for hosting the Asia-Pacific Economic Cooperation (APEC) in 2015, he added.

Abad said under the MBPF, about P12.3 billion are intended for the performance-based bonus; P35.6 billion is set aside for filling positions in military, uniform, education and hospital services, and P16 billion for new positions, and other personnel benefits.

Escudero also scrutinized the P22.5-billion projected savings out of MBPF funds.

A total of P120.5 billion is being set aside for the pension, separation and monetization of unused credits of state personnel.

The assistance of local government fund provides allocations for special shares in proceeds for national taxes, the barangay officials’  death benefits support fund, share of the MMDA, LGU support fund, and the special shares of the LGU in the Fire Code.